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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Around 3 years ago, I owed my bank around £5000. They sent

Customer Question

Around 3 years ago, I owed my bank around £5000. They sent me a letter offering me full and final settlement for £20. I quickly picked up the phone to call them and make a payment of £20.

I was under the impression that this was a written offer, which I accepted by paying.

The bank now says that this was a mistake, and that the original balance is still due. Am I correct to say that it is not due, as I have settled in full? It seems unfair for them to be able to go back on a letter/offer they have sent out.

Their argument is, that they sent out a different letter after the first (and before I had paid) with a different offer (some £3500) for settlement. But as they never explicitly said that they withdraw the previous offer, I presumed it still stood, and I accepted.

Am I within my rights to tell them to back off?
Submitted: 4 years ago.
Category: Law
Expert:  UKSolicitorJA replied 4 years ago.

I am afraid that the agreement between you and the bank is void on the grounds of unilateral mistake and the courts will not force the bank to honour the settlement.

This mistake is fundamental as a 20 pound settlement for a 5000pounds debt sounds too good to be true I am afraid and there is a very strong argument in favour of the Bank saying it was a mistake.

I would advise you to try and negotiate a reasonable figure with the Bank in full and final settlement.

All the best